In 2017, Amazon bought Whole Foods, a grocery chain that specializes in selling organic foods, for $13.7 billion and subsequently began adding stores and cutting prices. To date, the company owns about 500 Whole Foods grocery stores. Amazon has also added 26 Amazon Go convenience stores. The Amazon Go convenience stores are cashier-less stores that utilize different technologies such as computer vision, deep learning algorithms and sensor fusion that automate much of the purchase, checkout and payment processes. The stores are typically located in business districts designed to attract workers for breakfast and lunch throughout the day. However, Amazon recently announced its plan to open a larger Amazon Go grocery store in downtown Seattle, Washington.
According to Amazon, the new store will be located in a more residential area closer to customers’ homes with the expectation of enticing customers to come and grocery shop after work and on weekends. In addition to its Whole Foods and Amazon Go stores, Amazon also plans to open a few dozen supermarkets throughout the US that will have a more traditional checkout experience. They will also offer non-organic groceries at lower costs than Whole Foods, with the hope of attracting customers from lower and middle-income classes. Amazon’s business decision makes one think clear: the company is becoming a major player in the food industry.
